Stock Alert for Portage Resources Inc. (POTG)
  • Stock Alert for Portage Resources Inc. (POTG)
  • Pink Sheet Review; Portage Resources at a Glance
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    Stock Alert for Portage Resources Inc. (POTG)

    Portage Resources Inc. (POTG), a pre-exploration stage mineral company, focuses on the exploration and production of precious and base metals in Peru. The Company plans to recognize and acquire near-term production mining properties.  Its Peruvian management team intends to research, review and prove any reserves for the purpose of production.

    Share Statistics (29-June-11)
    Symbol POTG
    Current price $0.80
    52wk Range: n/a
    Avg Vol (3m): n/a
    Market Cap. 509.76M
    Shares Outstanding 637.20M

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of POTG corrected Wednesday following five days of upside, shedding $0.15, or 15.97%, to close at $0.80.  The stock was traded on heavy volume of 50.50 million shares. The current market capitalization stands at $509.76 million and shares outstanding is at 637.20 million shares.

    POTG moved past 68% gains on Monday after the Company announced a definitive agreement to acquire the Wukakuy Properties in Peru, which potential reserves were estimated to be in excess of 58 million oz of silver. Based on Fridays silver prices of about $35 per oz, the reserve estimates have a potential value in excess of $2 billion.  The precious metals project was acquired in exchange for 20 million shares of POTG from Airon Peru S.A.C.

    The stock also ended in the green last week after the Company announced the signing of a  letter of intent to acquire the Linderos #4 property, also in Peru.  Following due diligence on the property, POTG on Tuesday announced the signing of the definitive agreement to acquire the Linderos Property.  The precious metals project was acquired in exchange of 10 million shares of Portage from Nilam Resources.  According to the release, the Peruvian government calculated approximately 500,000  proven ounces of gold in the area of Linderos Project.  Additionally, the initial evaluation indicated that the project’s area contains 1 million ounces of gold immediately near surface and further drilling could potentially increase these estimates.

    The Company announced last week its new fully owned Peruvian subsidiary, Portage Resources SA. It said the new Peruvian company was formed as Peruvian law states that a Peruvian company must own any and all mineral rights within Peru.

    POTG president and CEO Paul Luna stated: “The local mining industry will see this as a positive step forward in acquiring mining properties, negotiating contracts, and all business operations.  This is another leap in the right direction for Portage Resources Inc.”

    Financial Summary

    POTG is a start-up mineral company in the pre-exploration stage and has not generated any operating revenues since inception. It has incurred losses since inception and its auditors have issued a going concern opinion since it must raise additional capital, through the sale of its securities, in order to fund it operations.  The Company has an accumulated deficit of $158,597 as of April 19, 2011.

    For the nine-month period ended February 28, 2011, POTG reported loss from operations of $13,337, as compared to loss from operations of $17,135 in the nine-month period ending February 28, 2010.  The Company attributed the narrower loss to a decrease in management fees.

    To date, POTG’s growth has been funded by the sale of shares and advances by its director in order to meet the requirements of filing with the SEC and to seek out a new mineral property.  The Company intends to search and obtain a new mineral claim with the potential for future exploration work over the next twelve months, POTG stated in its latest filing with the Securities and Exchange Commission.

    Source: Form 10-Q for POTG

    Financial Strength (15-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.65 1.17 0.71
    Current Ratio (MRQ) 0.00 2.00 1.58 1.04
    LT Debt to Equity (MRQ) 14.69 17.84 136.69
    Total Debt to Equity (MRQ) 22.86 36.04 182.77
    Interest Coverage (TTM) -0.01 0.20 18.15

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June29-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Petaquilla Minerals Ltd. PTQMF 0.67 118.81M n/a n/a n/a n/a
    Contact Minerals Corp. CNTM 0.25 4.13M n/a n/a n/a n/a
    AngloGold Ashanti Ltd. AU 41.89 16.09B 11.20 8.95 2.33 2.24
    PolyMet Mining Corp. PLM 1.35 209.01M n/a n/a n/a n/a
    Barrick Gold Corp. ABX 45.08 45.05B 10.41 9.86 3.54 3.33
    Median n/a n/a n/a n/a
    Portage Resources Inc. POTG 0.80 509.76M n/a n/a n/a n/a

    Source: Thomson Financial

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    One Response

    1. I waching from last 3 days for stock POTG, very high volume & volatile. Some how to-day stock hit bottom. would ypu let me know is this scam? If stock is not scam what are opporunity?

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